A to Z Index:
  • Share this |


Changes to Housing Benefit Legislation from April 2011

From 1 April 2011 the UK Government is making changes to housing benefit, which will affect tenants renting from a landlord in the private rented sector.

Could the changes affect me?

Yes, if you are renting a property from a private landlord, are receiving housing benefit and you made your claim for your current address on or after 7 April 2008.

House with MoneyWhat is changing?

The maximum £15 per week housing benefit excess that some people get will now end. This means that you will not be able to get more money from housing benefit than you pay in rent.

There will no longer be a 5-bedroom local housing allowance rate. The maximum level is for a 4-bedroom property.

The UK Government is also reducing the local housing allowance rates to a lower amount, so that about 3 in 10 properties for rent in your area should be affordable to people on housing benefit. At the moment about 5 in 10 properties in your area are affordable to people on housing benefit. This is known as the 30th percentile local housing allowance rate.

There will also be maximum rate caps, so that local housing allowance weekly rates in any area cannot be more than the amounts detailed below. These caps will probably only affect you if you live in London.

  • £250 per week for a 1-bedroom property
  • £290 per week for a 2-bedroom property
  • £340 per week for a 3-bedroom property
  • £400 per week for a 4-bedroom property

Finally the April 2011 changes includes a measure to allow an additional bedroom within the size criteria where a disabled customer, or their partner (with a long term health condition), has a need for overnight care that is provided by a non-resident carer.

How will I know what the local housing allowance rates will reduce to from April 2011?

There is information available about the30th percentile level of local housing allowance rates. You can visit the following web site to find out about rates in Scotland:

Frequently Asked Questions

How will this affect me?

It is possible that the amount of housing benefit you get to pay your rent may go down. If your housing benefit is paid direct to your landlord, the amount your landlord gets could go down. If you are getting or thinking about claiming housing benefit, you need to consider these changes before you renew or make a tenancy agreement with a private landlord.

When will this affect me?

If you are making a new claim to housing benefit or moving home, the changes will affect you from 1 April 2011.

If you are already claiming housing benefit and have your entitlement calculated on the excess of £15 per week, you cease to have the excess included in the calculation from the review date of your claim. For instance if your next review is due on 1 June 2011 you will lose the excess from that date.

If your are already claiming housing benefit you will not be affected by the reduced local housing allowance rate until 9 months after your review date.  For instance if your next review is due on 1 June 2011 you will go onto the lower local housing allowance rate on 1 March 2012.

The changes may affect you sooner if you are getting housing benefit and you move address or you household changes, for example someone leaves or moves in.

When will my claim next be assessed?

You can work this out from the date you made your original claim for housing benefit, or from the date we last assessed your housing benefit award.

For example, if you first made your claim for housing benefit on 5 September 2010 your yearly review date will be 5 September 2011.

Are there any other changes planned that may affect my housing benefit entitlement?

Yes, the UK Government announced a number of changes that may affect your housing benefit entitlement in the future, depending on your personal and household circumstances.

The other welfare changes that have been announced are as follows:

October 2011

  • Non-dependant deductions will be increased

April 2012

  • Increase in the age threshold for the shared room rate and single room rate from under 25 to under 35.

April 2013

  • Working age claimants who have been in receipt of jobseekers allowance for 12 months or more will have their housing benefit reduced by 10%
  • Local housing allowance rates will be increased by the consumer prices index

October 2013

  • Introduction of universal credit for working age customers

The detail of how these changes will work in practice is still unknown at this time as some of the changes require Parliamentary approval.

I have a carer who stays overnight how will this affect me?

Please ensure you have notified the benefit office about this. Please note you must already have an extra bedroom in your home available for the carer to use before you get this additional help. if you are already in receipt of housing benefit and meet the conditions for this help you will be entitled to receive this from the date the legislation becomes effective, i.e. April 2011.

What if I require extra rooms to accommodate disabled relatives or for couples who cannot share a room or where extra space is needed for medical equipment?

The change only applies where the person making the housing benefit claim or their partner, receives overnight care. Find out more about reductions you may claim for if you are responsible for payment of council tax.

Will I be told how the changes to housing benefit will affect me?

Yes, prior to the implementation of any changes the Benefits Section will write to those affected telling them about how the changes will affect them.